Property tax in 2021 for legal entities

2024 Author: James Gerald | [email protected]. Last modified: 2023-12-17 14:00

The tax legislation of the Russian Federation is constantly being amended and changed. The latest news concerns property tax in 2021 for legal entities.

How the current legislation has changed

The following amendments entered into force on January 1, 2020:

1. The cadastral value of real estate has ceased to be the main means for calculating tax.
2. Article 378.2 of the Tax Code of Russia provides for the conditions under which the existence of ownership or business rights for an organization is sufficient to calculate the tax.
3. The list of objects subject to taxation at the established cadastral value has been expanded. They are other business and shopping centers, non-residential premises and other real estate listed in Chapter 32 of the Tax Code of the Russian Federation.
4. Introduced declarative nature of benefits for the payment of transport and land tax. They are provided after submission of the application, to which the applicant attaches supporting documents. But such an application can be submitted to any branch of the tax inspectorate.
5. Facilitation of tax reporting for legal entities is achieved by the provided opportunity to submit a tax return to one office for all real estate objects.
6. In 2020, the form and format of the property tax declaration for legal entities were in force, updated in August 2019 and approved by the relevant order of the Federal Tax Service of the Russian Federation.
7. On April 1, the Russian Government adopted a new Federal Law, the need for which was caused by extraordinary circumstances - the coronavirus pandemic. Due to the quarantine regime, many enterprises have had difficulties with paying taxes, insurance premiums and salaries. The adoption of Federal Law No. 70 made it possible to extend the maturity of tax liabilities throughout 2020. The law also applies to the tax on the property of organizations.
8. Federal Law No. 70 provides for a special procedure for those who have entered into an agreement on the protection and promotion of investment (SZPK). If it is available, it is necessary to take into account separately the amounts accrued on real estate, which is associated with the execution of the agreement and has nothing to do with it.

In July 2020, new tax returns were adopted, the form of which required an update related to these amendments. The FTS posted a message about this on the Single Portal for its projects in advance. The importance of the document was due not only to changes in the form of the tax declaration and its format, but also to the special procedure for filling it out.

What you should pay attention to

In 2021, starting from January 1, an amendment to the Tax Code of Russia comes into force, according to which companies and enterprises are required to inform their tax inspectors about the availability of land or vehicles in their possession by attaching registration documents. The deadline for submission is December 31, 2021. In the coming year, this list includes both movable and immovable property.

There are other innovations to look out for in 2021:

• the need to provide settlements for advance payments for legal entities has disappeared;
• the conditions were announced that make it possible to register a taxpayer in one branch - notification before March 1 (no standard from local budgets, the impossibility of changing the order of the tax declaration during the tax period);
• it is possible to verify the data with the tax office at the location of the objects that are included in the USRN.

The FTS regularly publishes information on all the changes made to the taxation procedure for legal entities on the official website.

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Key innovations in 2021

The property tax of legal entities may undergo changes throughout the year, but so far only a few of them are known. They are already reflected in the official documents:

1. Cancellation of declarations (for transport and land taxes) and replacing them with messages from the tax inspectorate about the accrued amount (it is calculated by the number and nature of objects).
2. The payment deadline is uniform - transport and land taxes for legal entities are paid no later than March 1, 2022 (or March 1, which occurs after any expired tax period).
3. Payment of two forms of taxation is made on the basis of the message of the FTS branch. The calculation of the amount is based on the submitted list with registration documents. The data provided can be checked and updated.

Advance payments, as before, must be made no later than the last day of the first month after the expired period.

Summarize

The Tax Service of the Russian Federation continues to work on simplifying tax documentation:

1. The possibility of obtaining benefits on a declarative basis.
2. All documents can be submitted to one tax authority.
3. Cancellation of declarations and introduction of messages on the accrued amount.
4. Extended format for filing documents in electronic form and receiving data about the taxpayer as part of the interaction between the systems.